DRC Savills Investment Management LLP (DRC SIM), the real estate debt division of Savills IM, has provided a senior loan for the refinancing of Coliseo Europea, a 406-bed student residence in Madrid owned by Princeton Investments. Located in Villaviciosa de Odón, close to the Universidad Europea de Madrid, the complex enjoys an occupancy rate of over 95% for the academic year starting in September 2023.
DRC SIM has arranged this refinancing through its ERESD series of funds, which provide senior loans of between €15m and €75m for properties in the UK and Western Europe, with a loan-to-value ratio of up to 65%.
Alan Lee, Director of Princeton, expressed his satisfaction with the partnership with DRC SIM and Princeton's interest in expanding its presence in the student housing sector. Trevor Homes, director of DRC SIM, highlighted the deal as a reflection of the company's active strategy in the senior debt market. And Robert Kleinman, Brotherton's chief financial officer, highlighted DRC SIM's efficiency and flexibility in a challenging macroeconomic environment, citing a strong interest in student housing finance in the UK and European markets.
Legal advice on the transaction was provided by Burges Salmon in the UK and Cuatrecasas Gonçalves Pereira in Spain, with commercial advice from Hollis, CBRE, Situs Asset Management and Gallagher. Brotherton represented Princeton in structuring and managing the financing package.
